The nominal interest rate minus the expected rate of inflation: "defines the real interest rate" (Option A)
<h3>What is nominal interest rate?</h3>
In business and accounting, the nominal interest rate or nominal rate of interest refers to one of two things: the rate of interest before inflation adjustment, or the rate of interest "as stated" without adjustment for the full effect of compounding.
<h3>What is real interest rate?</h3>
A real interest rate is the observed market interest rate adjusted for inflationary impacts.
It indicates the buying power worth of interest paid on a loan or investment. It also shows a borrower's and lender's rate of time preference.
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Full Question:
The nominal interest rate minus the expected rate of inflation ________.
A) defines the real interest rate
B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate
C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate
D) defines the discount rate
Answer:
Tongue clicking is A. conditioned stimulus.
Explanation:
When it comes to classical conditioning, we can define a conditioned stimulus as a neutral stimulus that has become associated with an unconditioned stimulus and, eventually, begins to trigger a conditioned response. Tongue clicking was neutral; it did not cause any reaction in Francis. However, tongue clicking became associated with tickling. Tickling does cause Francis to squirm and giggle. Later, even if tickling is not happening, just the tongue clicking is enough to trigger the conditioned response of squirming and giggling. Therefore, tongue clicking is the conditioned stimulus.
Answer:
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